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Abstract:
The case is set in 2005 as executives at UTStarcom, a supplier of telecommunications equipment in China, ponder the company’s strategic options. Less than a decade after its founding, UTStarcom achieved revenues of US$2.7 billion. The company pioneered a technology that used fixed-line telephone networks to provide users with low-price mobile telephone services within a city limit. The case details the Chinese telecommunications market and competitive landscape and describes UTStarcom’s success to date. The company faces the strategic options of focusing on its Chinese customers and extending its product line; or expanding internationally to sell its systems in markets such as India poised for the same explosive growth in teledensity that China experienced in the 1990s. The case provides detailed data on the telecommunications market, competition, and macroeconomic variables for both China and India, allowing instructors to compare the two markets.
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